Suppose that a worker has the option of being paid in euros or dollars.It would be to the workers advantage if his employer pays him in ____________ rather than ______________ if the worker believes that the value of the dollar is about to ____________ relative to the value of the euro.
A) euros; dollars; fall
B) dollars; euros; rise
C) euros; dollars; rise
D) dollars; euros; fall
E) a and b

Question

Suppose that a worker has the option of being paid in euros or dollars.It would be to the workers advantage if his employer pays him in ____________ rather than ______________ if the worker believes that the value of the dollar is about to ____________ relative to the value of the euro.
A) euros; dollars; fall
B) dollars; euros; rise
C) euros; dollars; rise
D) dollars; euros; fall
E) ​a and b

Quizplus · Accepted Answer

If the worker believes the value of the dollar is about to fall relative to the euro, it would be advantageous to be paid in euros (A). Conversely, if the worker believes the dollar's value will rise, being paid in dollars is preferable (B). Both scenarios aim to maximize the worker's earnings based on expected currency value changes.

Suppose That a Worker Has the Option of Being Paid